• Wed. Jun 19th, 2024

Truth Social, owned by Trump Media & Technology, sees massive stock surge on debut


Mar 26, 2024

Trump Media & Technology Group stock is experiencing a surge on its first day of trading following its merger with Digital World Acquisition Corp. Formed under the stock ticker “DJT,” representing former President Donald J. Trump’s initials, the newly combined company is attracting significant attention in the market. After months of delays due to Securities and Exchange Commission investigations, DWAC shareholders finally approved the merger on Friday.

The announcement of DWAC shareholders’ approval on Friday led to a surge in DWAC’s stock on Monday, as plans were unveiled for the company to begin trading under the new “DJT” ticker on Tuesday. The momentum continued as markets opened on Tuesday for the combined company’s trading debut.

Trump Media stock, reflective of the former president’s initials, saw a 38% increase to $69.10 by 11:20 a.m. ET on Tuesday, reaching a high of 59% at $79.38 in the first half hour of trading. With former President Donald Trump holding approximately 80 million shares valued between $3 billion and $4 billion at the time of the merger announcement last week, his stake is expected to significantly increase following the first day of trading on the Nasdaq.

The merger between Trump Media and Digital World Acquisition Corp. was initially proposed in October 2021, but faced delays as regulators investigated potential misrepresentation of talks between DWAC and Trump Media prior to the public offering. Despite these challenges, no changes have been announced to the merger terms, including a six-month lock-up period preventing major shareholders like the ex-president from selling their shares.

Some observers see Trump Media’s decision to go public as a means of boosting President Trump’s finances amidst mounting legal fees and penalties. With potential legal challenges continuing to mount, this move may prove beneficial for the former president as he navigates future legal battles.

By editor

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